**(a)** Lessee shall be liable for and shall report and pay promptly when due all taxes, fees and assessments imposed, assessed or levied
against the Aircraft (or ownership, delivery, leasing, possession, use or operation thereof), this Agreement (or any rents or receipts hereunder), Lessor or Lessee, by any domestic or foreign governmental entity or taxing authority during the Lease
Term or related to this Agreement, including, without limitation, all license and registration fees, and all sales, use, personal or business property, excise, gross receipts, franchise, stamp, value added, customs duties, landing fees, airport
charges, navigation service charges, route navigation charges or other taxes, imposts, duties and charges; together with any penalties, fines or interest thereon (collectively **“Taxes”**). The parties agree that “Taxes” shall
also include any property taxes assessed on the ownership of the Aircraft. Lessee shall promptly reimburse (on an after-tax basis) Lessor for any Taxes charged to or assessed against Lessor, including, without limitation, any sales, use, or other
similar transaction taxes and property taxes imposed by the State of California or any agency or authority thereof or any local authority therein. Lessor and Lessee acknowledge that the California property tax is levied against the owner and/or
operator of the Aircraft at 12:01 a.m. on January 1st of each year – for the upcoming tax year – and such tax is typically due and
payable on or before August 31st of such year. No California property tax should be due with respect to the Aircraft during 2008, and Lessee
will receive the benefit of this exception. The tax due for future years will attach on January 1st of each year and will be due and payable